Property market malaise hits luxury homes in London – The Times

Even prime London housing has not been immune to the downturn in the wider property market after the rise in interest rates and amid recent political turmoil, the latest data suggests.

The number of homes going under offer last month was down 14.6 per cent compared with November last year and sales agreed dropped by 4.8 per cent over the same period, despite the high-end market being less dependent on mortgages, figures from LonRes, a housing data business, show.

There are also signs of increased supply, with the number of new instructions up 4.6 per cent in November year-on-year.

However, there is no sign of prices falling across prime London postcodes. The average achieved price per square foot rose by 1.9 per cent, albeit down from a peak of 8.9 per cent in July, and the picture for local markets within prime parts of the capital is varied.

The highest house price growth was in Marylebone at 12.7 per cent, followed by Knightsbridge and Belgravia at 9.3 per cent and Fulham and Earl’s Court at 6.7 per cent.


LonRes said the broader trend appeared to be higher price rises in the “prime fringe” of London, in areas such as Vauxhall, Nine Elms, Borough and Kennington, followed by “prime inner”, including Hampstead and St John’s Wood, and with “prime central”, such as Chelsea and South Kensington, recording the lowest price growth.

“This situation could well reverse next year as the more mortgage-dependent prime fringe markets start to struggle,” it said.

Anthony Payne, managing director at LonRes, said: “It’s the lack of choice that’s underpinning this market and acting as a support to prices. In the final weeks of 2022 we have seen a flurry of top-end sales, which include a flat with an asking price of £34.5 million, a house priced at £13 million, another at £10.5 million

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